You cannot discriminate against protected classes, but you can discriminate against everyone else. 

It is also a metric used for valuing the asset but its very relative as location and Class of property will effect CAP rates. 

I'm in a middle-class suburb and was lucky to appraise at $643K and my house is 10 years old!

In Orange County, investors I know are mostly flipping properties around Orange/Tustin/Anaheim or investing in the industrial asset class.

If I were to guess, they won't be "luxury", but class B.

I am newbie looking to start investing in the multi-family asset class.

Anecdotally I lived in one in Aptos and they hated me because of being "working class " when the loma prieta quake hit in '89 I ran around for 2 days safing off gas and electrical.While they cowered and cried.

Along with real estate illusions of just let me teach you and you will be rich in no time..really depends on the student.. you can have 25 taking a class and 5 will excell 15 might trundle along at 5 will do nothing. its not easy without capital or access to partners with capital when your starting out.

I would say its a victory to live for $400/mo net if you are in a B class or better area of Chicago. 

We would consider most of them C-class properties.